Recap Binance Exclusive Crypto Wealth Management Event at The Dolder Grand, Zurich

1. INTRODUCTION

The week of January 21, 2025, saw the World Economic Forum take place in Davos, bringing together influential global figures, including leaders like President Zelensky, billionaires, and major financial players. With developments such as the launch of digital asset ETFs and Donald Trump being dubbed the pro-crypto president of the U.S., it's no surprise that cryptocurrencies and blockchain were central topics at this year's WEF. Several exclusive side events were held, including Binance’s invitation-only crypto wealth management gathering at The Dolder Grand, the iconic hotel in Zurich. Guido Lassally of Oxido Solutions was among the attendees at this prominent cryptocurrency event. In this blog, we’ll cover:

• The nature of the Binance event
• An overview of Binance’s Wealth Management Program
• The types of parties in attendance
• Oxido Solutions’ role at the event
• The latest trends in crypto wealth management
• Key takeaways

2. THE NATURE OF THE BINANCE EVENT

Like Oxido Solutions, wealth managers are a key audience for Binance. These individuals and firms, which have access to substantial investment capital from UHNWIs, family offices, and professional investors, play a critical role in advising clients and constructing investment portfolios. As the demand for cryptocurrency increases, more wealth managers are guiding their clients to allocate discretionary capital into digital assets. Oxido Solutions is experiencing the same trend, with more family offices and other wealthy entities turning to crypto trading strategies, including those of the quant teams we assist with fundraising. Wealth managers are even reaching out to us directly for assistance in building crypto quant portfolios for their clients. Binance has recognized this growing interest and introduced the Binance Wealth Management Program to cater to these demands.

3. BINANCE CRYPTO WEALTH MANAGEMENT PROGRAM

Binance Wealth provides wealth managers with secure, intuitive tools to introduce crypto investments to their clients while earning commissions on those investments. Once a wealth manager creates an account on Binance, they can open sub-accounts for their clients and start managing their investments. Wealth managers can also collaborate with partners like Oxido Solutions to provide Binance trading bot strategies, allowing them to offer clients a diversified crypto portfolio. The Binance platform offers clear reporting, enabling wealth managers to track trades, performance, and key metrics, making it easier for them to share insights with their clients. Additionally, wealth managers benefit from revenue-sharing agreements on sub-account-generated income and rebates based on client activities, which opens up new revenue streams while expanding the number of professional clients using Binance.

For Oxido Solutions and our quant trading partners, wealth managers provide access to large investment tickets on Binance. Our experience shows that wealth managers often have long-term relationships with their clients, and this is particularly valuable in the context of crypto quant trading investments. These relationships mean that clients are more likely to stay committed to their investment strategies even during periods of drawdown, which refers to the decline in the value of an investment from its peak to its lowest point during a particular period. This is in contrast to other types of investors who may panic or withdraw capital at the first sign of volatility. Wealth managers know their clients are in it for the long haul, which helps create stability in their portfolios.

Our strategies are tailored to meet the needs of wealth managers, with a strong emphasis on risk management, scalability, and differentiation. By focusing on these aspects, we aim to enhance the overall quality of crypto trading on Binance. Ultimately, our shared objective with Binance and other stakeholders is to elevate the crypto space and provide wealth managers with the tools they need to offer their clients secure, long-term growth opportunities

4. OXIDO SOLUTIONS’ ROLE AT THE EVENT

At the event, Oxido Solutions provided valuable feedback on the Binance platform and connected with wealth managers and potential trading strategy providers. These conversations have already led to follow-up meetings and partnerships. Additionally, one of our clients, who uses both our trading strategies and those of our quant partners, was present at the event. We also discussed with Binance how we could contribute to similar events in the future, an area we’re eager to expand upon in the coming months.

5. THE LATEST TRENDS IN CRYPTO WEALTH MANAGEMENT The Binance Wealth Management event revealed several trends that are shaping the future of crypto wealth management. As traditional wealth managers increasingly incorporate digital assets into their offerings, the demand for crypto services is expanding rapidly. Key trends include:

1. Institutional Adoption and Demand for Crypto Exposure

Institutional investors are increasingly seeking to include cryptocurrencies in their portfolios. Large entities, including pension funds, family offices, and registered investment advisors (RIAs), are integrating digital assets into their investment strategies. According to a 2024 survey by Bitwise, 96% of financial advisors reported receiving inquiries about crypto from clients, up from 88% the previous year. This surge in interest underscores the growing importance of offering crypto investment options.

2. Diversification Through Crypto ETFs

With the launch of spot Bitcoin ETFs and other crypto-related funds, wealth managers have more tools to help clients gain exposure to digital assets while minimizing direct involvement with volatile assets. In 2024, over $10 billion flowed into cryptocurrency-related ETFs in the first half of the year, highlighting the increasing popularity of these regulated, diversified investment vehicles.

3. Focus on Risk Management

Given the volatility of crypto markets, wealth managers are placing significant emphasis on risk management. Many advisors recommend allocating no more than 3-10% of a portfolio to digital assets, balancing exposure with other traditional assets. Binance’s advanced risk management tools allow wealth managers to track and manage their clients’ crypto investments, helping to ensure that portfolios remain stable during periods of market fluctuation. According to a study by Nickel, nearly 60% of wealth managers advise limiting crypto investments to a small portion of the overall portfolio.

4. Education and Client Support

As the demand for crypto-related services grows, wealth managers are increasingly investing in education to understand the complexities of blockchain, crypto assets, and market dynamics. According to the 2024 Crypto Wealth Management Report, 72% of wealth managers have participated in educational programs on digital assets to better serve their clients. Binance’s Wealth Management Program has been instrumental in providing the tools and resources necessary to support this education, empowering wealth managers to confidently advise their clients.

5. Institutional Partnerships and Scalability

The crypto wealth management space is witnessing an increase in collaboration between traditional financial institutions and crypto firms. Binance’s Wealth Management Program allows wealth managers to offer scalable crypto portfolios, and through crypto quant trading firms like Oxido Solutions, they can provide sophisticated crypto trading strategies while ensuring effective risk management. These institutional partnerships are crucial to scaling and diversifying wealth management offerings in the crypto space.

6. KEY TAKEAWAYS

The Binance Crypto Wealth Management event emphasized the growing role of cryptocurrencies in traditional wealth management and how platforms like Binance are making it easier for wealth managers to incorporate digital assets into their services. Oxido Solutions remains at the forefront, helping wealth managers implement crypto trading strategies and expand their offerings. The event provided an invaluable opportunity to solidify partnerships, gain insights into the latest trends, and continue positioning ourselves as leaders in the institutional crypto quant space.

The information and opinion provided in this article is for general purposes only and should not be considered as specific financial advice or recommendations for any individual, exchange, security, or investment product. No rights can be derived from the information and data mentioned in this article.